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Based on the generally good approximation of 10% ownership for series B investors, this wasn't a great return (if any) for Benchmark. Pretty nice for the found
by arikr 9y ago
Based on the generally good approximation of 10% ownership for series B investors, this wasn't a great return (if any) for Benchmark.
Pretty nice for the founders though, and likely nice for the users too - Zenly's product requires all/most of your friends to use it for it to be good, which is really hard to do, but Snapchat already has a lot of users, so it'll take Zenly's tech and turn it into something valuable.
Seems like a nice outcome overall!
- flylib 9y agoat the upper bounds (350 million) (10% is 35 million) with 22.5 million invested in 9/2016 and the sale shortly after that is a nice flip and a gain of 10+ million
- kornish 9y agoThey definitely got their money back, but venture economics dictate that the fund is paid for by the outlier returns (10 to 100 to 1000x or more) rather than a nice 1.5x.
- omarchowdhury 9y agoBetter than a loss though.
- tinbad 9y agoWith those amounts, everything adds up. $10 million probably pays for a couple years rent for a fancy VC office on sand hill road.
- majani 9y agoIt's possible that preferred stock agreements ensured that the VCs got a better return than X/10